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Twilio, Inc. v. Telesign Corporation

United States District Court, N.D. California

November 17, 2017

TWILIO, INC., Plaintiff,
v.
TELESIGN CORPORATION, Defendant.

          ORDER GRANTING IN PART TELESIGN'S MOTION TO COMPEL AMENDED DAMAGES CONTENTIONS RE: DKT. NO. 121

          SUSAN VAN KEULEN UNITED STATES MAGISTRATE JUDGE

         I. Introduction

         Plaintiff Twilio, Inc. (“Twilio”) initiated this action in December 2016. The parties filed their joint case management statement on February 22, 2017. ECF 45. In accordance with the schedule set forth in the Patent Local Rules, Twilio served its damages contentions on June 20, 2017; Defendant Telesign Corporation (“Telesign”) served its responsive damages contentions on July 20, 2017. The parties have engaged in meet and confer efforts, to varying degrees of success. On September 21, 2017, Telesign filed this motion to compel Twilio's compliance with Patent Local Rule 3-8. The parties have been ordered to an early mediation (ECF 74, 130), which is scheduled for December 4, 2017.

         Following this Court's assessment of the requirements of the Patent Local Rules, the arguments presented in the parties' briefs and at the hearing held on November 14, 2017, Telesign's motion to compel is granted in part. Twilio will supplement its damages contentions with a computation of damages, as detailed below, no later than November 29, 2017. In addition, the parties will continue rigorous meet and confer efforts and produce additional documents as directed at the hearing and reflected in the record.

         II. The Patent Local Rules Require a Computation of Damages

         The Patent Local Rules[1] were amended as of January 2017, to address disclosure of damages information, and challenges in this District to L.R. 3-8 are still relatively few. This case, where Twilio has not provided either the reasonable estimate addressed in L.R. 2(b)(5) or a computation as contemplated in L.R. 3-8, presents an opportunity to address the Local Rule requirements to provide clarity to the parties, particularly in light of the impending mediation on December 4, 2107.

         A. The Rules

         To orient itself and the parties to the disclosure obligations set forth in the Local Rules, the Court finds it helpful to begin with a relevant definition:

noun: disclosure
1. the action of making new or secret information known.
"A judge ordered the disclosure of the government documents."

Disclosure, Oxford English Dictionary (3rd Ed. 2010) (Emphasis added).

         The first instance under the Local Rules where parties are to make known damages calculations is the initial case management conference. Local Rule 2(b)(5), in requiring a good faith estimate at the initial case management conference, provides:

2. GENERAL PROVISIONS . . .
(b) Initial Case Management Conference. When the parties confer pursuant to Fed.R.Civ.P. 26(f), in addition to the matters covered by Fed.R.Civ.P. 26, the parties shall discuss and address in the Case Management Statement filed pursuant to Fed.R.Civ.P. 26(f) and Civil L.R. 16-9, the following topics:
. . .
(5) The parties shall provide the court with a non-binding, good-faith estimate of the damages range expected for the case along with an explanation for the estimates. If either party is unable to provide such information, that party shall explain why it cannot and what specific information is needed before it can do so. Such party shall also state the time by which it should be in a position to provide that estimate and explanation. (Emphasis added.)

         Ninety days later, L.R. 3-8 requires a computation of ...


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